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- 🌊 America's New Sovereign Wealth Fund
🌊 America's New Sovereign Wealth Fund
Plus: Tariffs delayed, Elon takes on USAID, & Roca Nation drinks raw milk!
Facebook turns 21 today.
On February 4, 2004, Mark Zuckerberg launched “The Facebook” out of his Harvard dorm room. It was a pretty impressive sequel to his first site, which rated the looks of his female classmates. 21 years, a few gold chains, and 200 hours of jiu jitsu classes later, he’s still trying to get their attention. But we do owe him our gratitude for Facebook: Without it, my Uncle Gary would still believe the Earth is round and have no idea what the word “cabal” means.
PS: The first installment from Max F’s trip to the border went out in our original reporting newsletter — We The 66 — this morning. This one — if we may say so ourselves — is a fascinating, on-the-ground look at the tariff issue.
💰 DOGE takes on USAID
💸 The US to launch a wealth fund?
🥛 Roca Nation on drinking raw milk
–Max and Max
KEY STORY
Stock Market Roller Coaster
Global stock indexes fell sharply early Monday after Trump announced tariffs on Canada and Mexico, then rebounded after they were postponed
On Saturday, Trump announced 25% tariffs on all imports from Canada and Mexico
When markets opened on Monday, Asian and European stocks dropped sharply; when American markets opened, they fell too. Car companies were hit the hardest: American companies have supply chains crossing the Canadian and Mexican borders, while Trump appeared likely to put tariffs on auto imports form Japan and Europe
When it emerged Monday afternoon that Trump would delay the tariffs (see nearby article), US markets bounced back. the Nasdaq ended down 1.2% and the S&P 0.8%, while the VIX – an index measuring market volatility – rose 13.33%
Dig Deeper
Crypto markets were also volatile, with roughly $300B wiped from the combined market early in the day but recovering after tariffs were delayed
As of mid-day Monday, Bitcoin was down 4% and Ethereum down 17%, but both bounced back by Monday evening
KEY STORY
DOGE vs. USAID
Reports emerged that USAID – the government agency that administers foreign aid – would be eliminated
Trump paused all aid disbursements by USAID last week. On Monday, the office was shut; hours later, Elon Musk called it a “criminal organization” and said Trump had “agreed that we should shut it down”
The agency employs around 10,000 people and has an annual budget of ~$40B. It accounts for 42% of all global humanitarian aid, per the UN
A CBS report on Monday said it would be merged into the State Department and undergo significant layoffs. It’s unclear if doing so is constitutionally permissible
Dig Deeper
During a visit to Panama, Secretary of State Marco Rubio said he is now the acting administrator for USAID. He told reporters that many of the agency’s aid programs were valuable and would continue under the State Department
It’s unclear if Trump has the authority to take such drastic steps with the agency, as eliminating a federal agency requires congressional approval
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KEY STORY
Tariffs Delayed
The US postponed 25% tariffs on Canada and Mexico after the countries agreed to boost border security
Mexican President Claudia Sheinbaum agreed to deploy 10,000 troops to combat the flow of migrants and fentanyl, adding that the US will work to limit “the trafficking of high-powered weapons to Mexico”
Canadian PM Justin Trudeau agreed to implement a $1.3B border security plan that will reinforce the border with “choppers, technology and personnel,” designate cartels terror organizations, and appoint a “fentanyl tsar”
In 2024, the the US seized 21,000 lbs of fentanyl on the southern border and 43 lbs on the northern one
10% tariffs on China are still set to begin on Tuesday
Dig Deeper
Trudeau spoke with Trump twice on Monday, during which he agreed to increase border surveillance, security measures, and appoint a taskforce to combat fentanyl smuggling
Canada had previously imposed 25% retaliatory tariffs on $155B of US goods
Trump said he was “pleased” with the “initial outcome” of discussions with Canada, but that negotiations would continue over the next 30 days
KEY STORY
US Sovereign Wealth Fund
President Trump signed an executive order outlining plans to create a sovereign wealth fund, which the Treasury Secretary said would be launched “within 12 months”
Sovereign wealth funds are generally used by nations with vast natural resources and budget surpluses, while the US currently runs deficit
Trump has previously argued that a sovereign wealth fund could be supported by "tariffs and other intelligent things,” though its creation would likely require congress’s approval
He also told reporters that if another agreement for TikTok’s sale is not reached, “we might put that in the sovereign wealth fund”
Dig Deeper
Over 90 sovereign wealth funds across the world manage $8T+ in assets. The largest, Norway’s, manages $1.7T+
Several US states, including Alaska, Texas and New Mexico, also have their own wealth funds, which rely on revenue raised by natural resources, oil, or land to reduce taxes, fund government programs, or issue payments to residents
RUNDOWN
Some Quick Stories for the Office
💊 The FDA approved a non-opioid painkiller designed for short-term pain following surgery or injuries
🇵🇦 During a visit to Panama by Secretary of State Marco Rubio, Panama’s president announced his country would exit the Belt and Road Initiative (BRI) and grant US naval ships free passage through the Panama Canal
🇺🇸 Thousands of FBI employees have been required to complete in-depth questionnaires about their involvement in investigations into the January 6 rioters
🇩🇪 160,000+ people in Berlin protested against the right-wing Alternative for Germany (AFD) party
🇬🇱 Driven by fears of potential interference in its coming elections, Greenland is expected to pass a bill this week banning foreign political funding
COMMUNITY
What does Roca Nation think?
🧠 Yesterday’s Question: Would you ever drink raw milk?
Of course! We already do and have for years. There are many health benefits. Funny that we don’t worry about drugs, vaccines, or chemicals. We put all of that into our bodies without a thought. We poison ourselves daily, but raw milk is a threat or health risk. We really don’t understand health at all.
Absolutely I would drink raw milk! I live in a dairy community and there's a dairy 1 mile from us that sells the most delicious flavored raw milks. My personal favorite is cappuccino, my kids love the chocolate peanut butter. They also have homemade yogurt and cream and gallons of regular white raw milk. Nothing ever lasts long in our home!
No. The benefit doesn't seem to outweigh the risk in any measurable way. I'm all for doing the best thing for our health but I don't understand this one.
Yes, I drink raw milk, and I give it to my children. Raw milk became problematic during the Industrial Revolution when industrial agriculture was conducting hazardous cost cutting measures and hygiene standards and technology were not close to what they are today - those measures later became regulated. Around that time, John Rockefeller, who was heavily invested in pasteurization machinery and milk processing, began lobbying to ban raw milk in order to become a middleman between the farm and consumer. This was not about safety, it was about making money. The ban was a huge hit to small farms, who couldn't afford the required machinery for pasteurization. Today, better technology enables farms to safely produce and directly sell raw milk, although they are usually forced to sell it as "pet milk". As Lily Nichols, a highly respected dietitian specializing in pregnancy and fertility nutrition notes in her book Real Food for Fertility, "From a statistical standpoint, you're more likely to get food poisoning from eating a green salad than you are from drinking raw milk from a certified operation." The risks are seriously overblown, and the nutrient benefit is significantly higher than pasteurized milk. The propaganda machine against raw milk is strong, but I don't find it at all compelling.
We milk and drink fresh raw goat milk every day. When pasteurized, milk loses its medicinal value. Goat milk is the universal milk, closest to mother's milk and able to be fed to almost all animal species, even elephants. Goat milk lipids are much smaller than cows milk so much easier to digest-making it less likely to cause allergies. Brucellosis in Goats is extremely rare. According to the US Animal Health Association there have been only two cases of TB and brucellosis in goats since 1972. Cases of brucellosis in US in cows are few and far between. Raw milk's medicinal value promotes health whereas pasteurized milk hinders the health benefits.
No. The benefit doesn't seem to outweigh the risk in any measurable way. I'm all for doing the best thing for our health but I don't understand this one.
🧐 Today’s Question: As “biohacking” becomes more popular in tech world, would you want to live past 120? How long do you want to live?
POPCORN
Some Quick Stories for Happy Hour
🧑🔬 Da Vinci's Secret Tunnels: Scientists have confirmed Leonardo da Vinci wasn't just imagining things when he drew secret tunnels under a 1400s-era Italian castle - they're actually there, and there might be more
🇵🇪 Speedrunning Mayor: YouTube star IShowSpeed added a new claim to fame when he became Lima's mayor for two hours during his South American tour, negotiating up from the original one-hour offer
🐻 An Unbearable Houseguest: A family in Altadena, California returned home from the wildfire evacuation to discover that a 525-pound bear had made himself at home in their crawl space
🎂 PETA's Phil Fix: PETA has suggested that Groundhog Day meteorologist Punxsutawney Phil be replaced with a weather-predicting cake that would show blue filling for winter and pink for spring
💰 Mr. Beast’s Biggest Challenge Yet: YouTuber MrBeast has joined with Roblox CEO and others to submit a $20B bid to buy TikTok
ROCA WRAP
A Short Fight
North Korea
This country has pulled its soldiers from Ukraine after reportedly suffering heavy combat losses.
An isolated authoritarian state of 26M people, North Korea deepened its alliance with Russia by sending troops to fight in Ukraine, marking an unprecedented level of military cooperation between the two sanctioned nations.
In November 2023, Kim Jong-un deployed an estimated 11,000 soldiers to help Russian forces try to dislodge Ukrainian troops in the Kursk region
In recent days, Western analysts have reported that North Korean troops have been pulled from the front lines after just three months of fighting.
Western reports have estimated that around 1,000 North Koreans have been killed, while Ukrainian and South Korean sources claim that 25-30% of the force has been killed or wounded.
While described as committed fighters who rarely surrender, North Korean soldiers reportedly struggled with unfamiliar terrain and outdated equipment. One captured diary allegedly revealed that the Koreans were ordered to act as human "drone bait" to help attract Ukrainian drones so they could be shot down.
Neither Pyongyang nor Moscow has officially acknowledged the presence of North Korean troops in combat zones. However, American officials suggest the forces may return after receiving reinforcements and additional training, indicating that despite the setbacks, the military partnership may continue.
EDITOR’S NOTE
Final Thoughts
Your answers to the raw milk question were fascinating. We asked the question because we’re currently working on a raw milk story, having just interviewed RFK Jr.’s potential raw milk czar — who owns a dairy in California — and a food science professor at UW Madison who warns of its risks. We were surprised to see how many of you drink it. Looks like the Roca team is due for an afternoon field trip to the Hudson Valley.
–Max and Max